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Sporting a new two-mode hybrid powertrain, the 2009 Cadillac Escalade Hybrid promises to offer a 50-percent increase in fuel economy around town and at least a 25-percent increase overall. The Escalade Hybrid goes on sale this summer.

The Escalade Hybrid will be available with rear- or four-wheel drive. The hybrid powertrain will be available only on the standard-length Escalade; it won't be offered on the long-wheelbase Escalade ESV or the Escalade EXT sport utility truck.

Developed with Chrysler, BMW, and Mercedes-Benz, the Cadillac Escalade's two-mode hybrid system mates GM's Vortec 6.0-liter V8 with the company's new Electrically Variable Transmission (EVT). The EVT has two electric motors and four fixed gears. In one mode, the hybrid powertrain aids power at low speeds and the other mode is devoted mostly to highway driving. The V8 also has GM's Active Fuel Management system, which shuts down four cylinders under light load conditions to conserve fuel. GM says the electric motors can allow the engine to operate in four-cylinder mode more often. Together the motors and engine produce 332 horsepower and 367 pound-feet of torque.

With light throttle, the electric motors can propel the Escalade up to 30 mph. Like other systems, the gasoline engine shuts off at stoplights and restarts when needed. Fuel economy estimates have not been released, but the similar Chevrolet Tahoe Hybrid is EPA rated at 21 mpg in the city and 22 mpg on the highway with 2WD and 20/20 City/Highway with 4WD.

While fuel economy is up, towing capacity is down. The 2009 Cadillac Escalade Hybrid will be rated to tow up to 6000 pounds with rear-wheel drive and 5700 pounds with four-wheel drive. By comparison, the base Escalade, which has a 403-hp 6.2-liter V8, can tow up to 7700 pounds.

The 2009 Cadillac Escalade Hybrid will have a 300-volt battery pack located under the second-row seats. The battery pack powers the electric motors, as well as the electric power steering system and electrically driven air conditioning compressor. Regenerative braking will charge the batteries.

Though Cadillac hasn't released full information, the 2009 Escalade Hybrid will most likely feature exterior modifications meant to reduce weight and drag. These may include an aluminum hood and tailgate, a lowered front air dam, tapered running boards, fixed rear glass, a tire inflation kit in place of a full-size spare tire, and reshaped rear pillars and center high-mounted stoplight.

On the inside, the Escalade Hybrid will have an eight-inch touch screen with a power flow schematic to show if the power is coming from the electric motors, the gasoline engine, or both. There will also be a special tachometer and an economy gauge. The economy gauge's green bar represents a zone drivers can aim for to maximize fuel economy. The tachometer will include an Auto Stop reading to indicate when the gasoline engine is shut off.

Pricing hasn't been announced but the 2009 Cadillac Escalade Hybrid should start in the low-to-mid $60,000 range.